The UK's largest friendly society, Liverpool Victoria, has acquired the Royal National Pension Fund For Nurses (RNPFN) in a deal worth £248m.
Under the terms of the deal, Liverpool Victoria will pay £200m for the business of the RNPFN and an extra £48m to establish a new charitable company called the Burdett Trust for Nursing. The Trust, named after the pension fund's founder, will provide charitable benefits for the nursing and healthcare communities.
The £200m that the friendly society will pay for the estate of the fund, is the amount by which the RNPFN's assets exceed its liabilities. The RNPFN, founded in 1887 by Sir Henry Burdett, provides low cost life, pensions and savings products to the healthcare and nursing community.
Liverpool Victoria will not acquire an interest in either the RNPFN's with-profits or non-profit in-force business. Additionally, the friendly will provide the RNPFN with an £100m capital support facility. This money will provide RNPFN policyholders with extra security and investment freedom, according to the friendly.
The deal, which requires formal approval from the High Court for the transfer of business, is expected to be completed by the end of the year. Liverpool Victoria's assets under management will increase from £5.5bn to £7.2bn as a result.
The RNPFN is a company limited by guarantee, and has no shareholders. It is owned by 12 members, and has more than 200,000 policyholders from both the National Health Service and the private sector.
*Additionally, the RNPFN has sold a retail property in Cirencester to private investors for £1,115,000. The property, on 45 Cricklade Street, was bought by a private investor and represents a net initial yield of 8%. The 4,177 sq ft building comprises two floors and is currently let to the Burton group until 2010.
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